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The Bulletin
of the
North Carolina Department of Agriculture
James A. Graham, Commissioner
Number 224, May 1976
TABLE OF CONTENTS
Foreword 3
Tobacco Is the Story of North Carolina 4
Optimistic Outlook for 1976 10
State Market Summary 1975-76 13
North Carolina Tobacco Warehouse Sales
Report for Season — 1975-76 16
Summary of N. C. Dealer and Warehouse
Resales — 1975 18
Producer and Gross Sales of Flue-Cured
Tobacco by States — 1975 18
Flue-Cured Movement In and Out
of North Carolina 19
Burley Movement In and Out of
North Carolina 19
Flue-Cured Stabilization Receipts
by Types and States — 1 975 20
Burley Stabilization Receipts for
N. C. and Total U. S. 1975-76 20
N. C. Burley Tobacco Allotments — 1976 21
N. C. Flue-Cured Tobacco Allotments — 1976 22
North Carolina Flue-Cured Crops 1920-1975 24
North Carolina Burley Crops 1928-1975 25
North Carolina Tobacco Warehouses and
Operators by Types and Markets — 1975 26
The Cigarette Tax Burden 33
State Board of Agriculture 35
Domestic Tax Paid Cigarette Consumption
by Kinds 1975 36
For free distribution by the Field Crops Section,
Division of Markets, North Carolina Department
of Agriculture, Raleigh, N. C.
Curtis F. Tarleton, Director, Division of Markets
J. H. Cyrus, Chief, Field Crops Section
J. T. Bunn, Tobacco Marketing Specialist
Foreword
The twenty-seventh annual issue
of the North Carolina Tobacco Re-
port has been prepared and edited
under the direction of J. H. Cyrus,
Chief of Field Crops Section and
J. T. Bunn, Tobacco Marketing
Specialist, Division of Markets,
North Carolina Department of Agri-
culture.
This issue of the North Carolina
Tobacco Report commemorates
the Bicentennial Year of our great
nation. Lest you should forget, you
are reminded once again of the important economic role that
tobacco has played in building a nation from the laying of the first
cornerstone by the colonies down to our present time.
It was tobacco that provided the colonies in the Albermarle area
with the economic stability to survive for more than 165 years
before their Declaration of Independence. Tobacco is still the life-
line of North Carolina today.
We proudly recognize the following agencies and organizations
for their assistance in making some of the data available for this
publication: The Cooperative Crop Reporting Service; Agricultural
Stabilization Conservation Service, USDA; Agricultural Marketing
Service, USDA; Flue Cured Tobacco Cooperative Stabilization
Corporation; and Tobacco Tax Council.
The cover picture, the resemblance of an American Indian Head
made from tobacco, was made available through the compliments
of Tobacco Associates, Inc. The wooden statue of an American In-
dian was once used to mark the locations of tobacco shops in early
America.
Commissioner of Agriculture
Tobacco Is the Story of North Carolina
By J. H. Cyrus
The story of North Car-
olina is a story of three
centuries of tobacco.
During this Bicentenni-
al Year as we look back at
our past, in order to mus-
ter new strength for the
future, it is appropriate
that we examine the in-
fluence that tobacco has
had in the history of North
Carolina, which was des-
tined to make this State
the leading tobacco pro-
ducing and manufactur-
ing area in the nation.
Tobacco was the main
economic cornerstone in
the birth of a newColonial
State with the coloniza-
tion of the Albermarle
area near Jamestown, and
the area to the south during the early and mid 1600's. It was in this
cradle that the great tobacco industry that we have in North Caro-
lina was born.
Carolina Chartered 1663
King Charles I conferred a charter in 1629 for the settlement of
a territory to be called Carolina, but the Charter remained inactive
and was finally declared forfeit. A group of English noblemen later
renewed the proposal for colonization, and a charter was awarded
them in 1663 making them Lords Proprietors of Carolina. How-
ever, prior to this charter colonists from Virginia had been mov-
ing into the Chowan River and Albermarle Sound area prior to
1650 where they were producing tobacco from the milder seed,
nicotiana tobocum, imported into Jamestown by John Rolfe in
1612 from Spanish colonies in South America. These milder
Spanish seed soon replaced the nicotiana rustica seed that the set-
tlers found the Indians growing which had a harsh and biting
taste. Thus, the cornerstone that lead to North Carolina becoming
the number one tobacco producing, manufacturing and export-
ing State was laid by John Rolfe when he introduced the milder,
more flavorable seed that were used by the settlers in the Alber-
marle area.
By the beginning of the 1700's the tobacco crops in Carolina
were in the range of 800,000 pounds annually. As in the Virginia
and Maryland area to the North, tobacco was used for money, and
goods and services were paid for with leaf throughout the Colonial
period.
To enter the export trade, Carolina growers had to move most
of their tobacco through the Virginia port. However, Virginian op-
position to the Carolina's tobacco intensified during the latter
part of the 17th century because of a realistic fear of competition
from Carolina in foreign trade. This lead to the enactment of legis-
lation in Virginia in 1679 which prohibited the admission of Caro-
lina tobacco into Virginia except in payment of debts. However,
this problem was solved for Carolina growers by canny New
England traders who picked up their tobacco in shoal-draft boats
and conveyed it from the waterside to waiting sloops. The cargo of
tobacco was then taken to New England harbors and transferred to
ocean going vessels and carried to markets in Holland, Scotland
and elsewhere in Europe.
North Carolina Emerges
After 1700 certain political changes were taking place that had
no effect on tobacco production. The southern part of the Caro-
lina province was separated from the northern part in 1712 to
form South Carolina. The Lords Proprietors Charter was "extin-
guished" in 1729, and North Carolina became a royal province ten
years after South Carolina. Passable roads and usable harbors at
Brunswick and New Liverpool (later Wilmington), and increasing
population contributed to a steady growth in tobacco production
in North Carolina throughout the rest of the colonial period.
Leaf quality was generally improved as was marketing proced-
ures after the passage of an inspection law in 1754. Under this law
tobacco intended for export was brought to public warehouses
and, after official examination, was credited to the grower by
warehouse receipts or notes, which were transferable and pay-
able on demand, and valid for 18 months.
About a decade prior to the American Revolution, port Roanoke,
(Edenton) became the center for export shipments of North Caro-
lina tobacco. Most of the crop went to Scotland, with smaller
quantities going directly to England.
Changing Years
In the post Revolutionary War period, there was a change in the
markets supplied by North Carolina tobacco. Large amounts of
tobacco went to domestic outlets, and Great Brittain received less
than half of the tobacco it had been receiving annually prior to the
war. These years brought much proverty and disorder to most of
North Carolina's 389,000 people. Yet, new towns were shortly
coming into being. Raleigh was laid out in 1792. Old Salem, center
of the Moravian community and scene of what is probably the
country's oldest tobacco shops opened by Matthew Miksch in 1773,
shook itself out of the economic depression.
By the beginning of the nineteenth, chronologically. North Caro-
lina was not too far away from the period of its greatest expansion,
which stemmed almost wholly from tobacco. Although, industrial
progress was hardly obvious during the first half of the 1800's to-
bacco production continued its slow advance in North Carolina,
but still far behind Virginia. In 1839 the total North Carolina to-
bacco crop was about 16.8 million pounds, while Virginia's was
over 75 million pounds.
During this period of the early 1800's, snuff lost its dominance,
and there was a renewed interest in pipe smoking. Consumers at
home and abroad wanted a tobacco of milder flavor than the dark
heavy leaf then being generally produced in Carolina and Virginia.
A thin leaf of yellowish color occasionally produced by some
growers seemed to provide a smoke with the desired flavor and
aroma, but this type of tobacco was rare. This led to considerable
experimentation with soils, cross-breeding of tobacco and curing
methods. While some yellow light-bodied was produced through
this effort, growers seemed unable to develop a dependable pro-
cedure to assure an adequate supply.
History Changed by Accident
On the farm of Abisha Slade in Caswell County, North Carolina,
on an otherwise forgotten rainy night in 1839, a young slave,
Stephen, headman and blacksmith on the Slade farm, acci-
dentally changed the course of tobacco history. Stephen was
seated in the barn watching the open wood fires on the dirt barn
floor as the tobacco slowly cured, when he fell asleep. Awakening
and seeing the fires nearly out, he ran to the nearby Charcoal pit
and got hot coals and rekindled the fire.
The hot embers created more than the usual amount of heat,
causing the wilted and yellowing leaves to dry more rapidly to a
bright yellow color never before seen in tobacco. The 600 pounds
of yellow cured tobacco was sold to a Danville, Va. manufacturer
for an unheard of price of 40 cents per pound, which was about
four times the prevailing price.
In 1886, Stephen was asked again how he discovered the value
of Charcoal in curing exceptional bright leaf tobacco, and his
words were recorded: ". . . to tell the truth about it, 'twas a acci-
dent. I commenced to cure it and it commenced to git yallow. It
kep' on yallowin' and kep' on yallowin' and kep' on yallowin'
twell it got clar up ... it looked so purty. I kept making it yallow
and when it was cured it was 'musement for folks to come and
see it."
New Era in Tobaccoland
A significant development, that ushered in a new Era in the
rapid growth of the tobacco industry in North Carolina, took place
at Durham Station, North Carolina, in the spring of 1865, after
Lee's surrender to Grant at Appomattox, Va. While Generals were
working out peace terms at Bennett's farm near Durham Station,
soldiers in blue and gray wandered into town and their noses led
them to the tobacco factory of John Ruffin Green, which contained
a large quantity of flavorful granulated smoking tobacco that
Green supplied to students at the nearby University of North Car-
olina. The soldiers helped themselves to samples of this unusual
smoking tobacco. After they had departed, about all that Green
had left was the wooden building and its primitive equipment.
Under the circumstance Green was hardly aware that his for-
tune had been made. Within a short while, the men who had
raided his factory began writing from homes all over the land for
a supply of Durham tobacco for which they were now willing to
pay. This new demand supplemented Green's student trade and
led to the large-scale production of smoking tobacco. Thus, Dur-
ham was destined for world-wide fame a few years hence with a
brand of smoking tobacco called "Bull Durham."
In 1866, following the civil war, only 16,000 acres were under
tobacco cultivation in North Carolina. Production totaled 7,840,000
pounds in that year. Tobacco was scarce then and buyers paid an
average of 20 cents per pound. This price was not reached again
until 1916.
By 1870, flues were being used in barns replacing charcoal, to
evenly distribute the heat in curing tobacco. They soon became
standard equipment in curing barns throughout the bright-leaf
area.
Auction Wareliouses
Tobacco founded Durham, whose original factory had opened
for small-scale operations in 1858. That same year the first auc-
tion warehouse for the sale of tobacco came into use in Danville,
Va. In 1871 William T. Blackwell & Co. opened the first auction
warehouse in Durham for the sale of leaf tobacco. A year later in
1872 Winston (Winston-Salem 1913) opened its first auction ware-
house and leaf market. Henderson started its auction warehouse
center in 1873. Within a few years eight or nine other such tobacco
auction warehouses were opened in small towns in the Piedmont
counties south of the Virginia line, which ushered in the tobacco
auction era in North Carolina.
Cigarette Era Begins
By 1882, there were 295 tobacco manufacturing plants listed in
35 North Carolina counties. During the 20 years that followed, the
number of tobacco factories in this state exceeded 400. These
plants were making mainly smoking and chewing tobacco.
During this same period, a young Virginian, James Albert Bon-
sack, helped usher in the cigarette era with his invention of the
cigarette making machine, which was registered in the U. S. patent
office, September 4, 1880. The machine would make 120,000 cig-
arettes per day. It was first placed into operation in the Duke fac-
tory at Durham in 1884 where two machines were installed. The
following year cigarette production passed one billion for the first
time in history.
The Old North State was now on the threshold of taking the
lead from Virginia in the tobacco economy. By 1890, the cultiva-
tion of the flue-cured type of tobacco had extended into the
Coastal Plain of North Carolina. Soon after 1895 the harvest of
tobacco in North Carolina was well in excess of 100 million
pounds, with the production curve ascending each year. Before
the turn of the century, the Tar Heel State had firmly taken the
lead as the number one tobacco producing and manufacturing
state— a position it has held to this day.
"The Trust "
In 1890 the American Tobacco Company was organized by
James B. Duke and other large manufacturers north of North Car-
olina. Shortly after this organization, the American Tobacco Com-
pany began buying all promising independent companies it could
acquire and then allowed smaller and less aggressive companies
to die through competition. This was the beginning of what came
to be known as "the trust."
The R. J. Reynolds Tobacco Company started by Richard Joshua
Reynolds in 1875, who vowed that he would not be swallowed
by Buck Duke, continued his independent operation until 1899.
However, pressure was so great that Mr. Reynolds joined "the
trust" in 1899, after American Tobacco Company purchased the
majority stock in the Reynolds Company.
As the American Tobacco trust grew larger, rumblings against
"the trust" increased, and complaints of tobacco growers through-
out the southern tobacco producing area grew stronger and louder
because of the control of "the trust" over prices paid to growers.
R. J. Reynolds sided with the tobacco farmers in their opposition
to "the trust."
Trust Dissolved
These rumblings came to a head by 1907, when the Federal
Government brought charges against the American Tobacco
Company for operating a monopoly in restraint of trade in viola-
tion of the Sherman Anti-Trust Law.
In 1911, the courts held that the American Tobacco Company
had violated the Sherman Law and ordered its dissolution, to be
carried out under direction of the Circuit Court of Appeals of the
State of New York. With assistances from the man who had built
"the trust," J. B. Duke, the court split the American Tobacco
Company into four corporations: The American Tobacco Com-
pany, Liggett and Myers Tobacco Company, P. Lorillard Tobacco
Company, and the courts allowed R. J. Reynolds Tobacco Com-
pany to assume and to continue its former independent status.
This action by the court added a new dimension to the growing
tobacco industry in the Tar Heel State.
Thriving Industry Today
North Carolina in this bicentennial year continues to thrive as
the number one tobacco producing, processing, manufacturing
and exporting state in the nation. Tar Heel farmers today produce
and market two-thirds of all the flue-cured tobacco grown in the
United States. Approximately 75 percent of the National flue-cured
production is processed in North Carolina plants.
The four tobacco manufacturing companies that came out of
the "the trust" continue to thrive in North Carolina, and account
for more than 55 percent of the Nations total production of cig-
arettes. North Carolina also exports more tobacco than any other
state today.
Thus, each field of tobacco seen today across this tobacco state
is a link in an exceptional history that began more than three cen-
turies ago. This link was forged by mankind's most Social appetite
for tobacco products of rich flavor and aroma.
Optimistic Outlook for 1976
North Carolina flue-cured and burley tobacco growers continued
to feel the cost-price squeeze more than ever during the 1975 mar-
keting season, due mainly to a larger crop and poorer quality that
resulted in a decline in market averages of more than $5 per
hundred. However, because of the volume of sales, 932 million
pounds, which was the States 5th largest flue-cured crop, growers
received a record gross return of $930 million.
North Carolina burley tobacco growers also received a record
gross return from their 1975 crop of $22 million. However, as was
the case with flue-cured growers, burley growers experienced a
declining market average due to a larger crop and poorer quality
in some areas, averaging $4.55 per hundred less than $106.65 in
1974.
There is no question but that adverse weather conditions, dur-
ing the 1975 growing season, was the major contributing factor to
poorer quality and lower prices last season for both flue-cured
and burley growers. Weather is always the limiting factor in any
crop that cannot be predicted.
Cost Leveling Out
For 1976, flue-cured and burley tobacco growers will have the
best ratio between the cost-of-production and price support that
they have had in a number of years. The cost of production has
leveled out. For instance, fertilizer is costing less, fuel cost is
about the same, pesticides are about the same as last season,
interest rates are about the same, labor is about the same or slight-
ly higher in some areas. The items of production that are still rising
in cost are farm equipment and parts for equipment.
Price Support Up
While the cost-of-production is leveling out, flue-cured and
burley growers will receive a 13.7 percent increase in price sup-
port, which is the largest increase ever received in any one year
since the price support program has been in operation. This in-
crease, which is tied to the cost-of-production in the price sup-
port formula, pushes the flue-cured average support to $106.00 per
hundred for 1976, or an increase of $12.80 per hundred over the
1975 loan rate. The average burley support for 1976 will move up-
to $109.20, compared to $96.10 in 1975.
When this increase in price support is spread across the U. S.
Standard Grader, it will increase the loan rates for the individual
grades from about 5 to 20 cents above the 1975 grade loan rates.
10
The up-stalk leaf (B) grades which are now in strongest market
demand will get the largest increases, while the bottom of the
stalk lug, priming and non-descript grades will get the smallest
increase in loan rates.
Supply and Demand
The carryover supply of flue-cured tobacco at the beginning of
the 1976 market year will be up about 8 percent above the 1975
starting level, and the total supply is projected at about 2.5 times
the current disappearance, which is considered a normal level.
However, there is a problem of embalance of grades in the total
supply situation in that there is currently a surplus of low lug,
priming and non-descript grades, which make up the bulk of the
stocks held under loan by Flue-cured Stabilization. At the same
time there is a deficit of up-stalk leaf grades, especially better
quality leaf (B) grades.
Thus, we can expect a strong market demand for good quality
leaf (B) grades during the 1976 season from both domestic and
export buyers. At the same time there will be a good domestic
demand for solid priming and lug grades that are free from exces-
sive foreign matter. Unfortunately, there is very little export de-
mand for primings and lugs, which means that Stabilization will
likely continue to take large volumes of low lug and priming
grades under loan during the 1976 marketing season. However,
with an anticipated smaller overall flue-cured crop for 1976, pro-
jected at about 1,340 million pound compared to 1,411 million in
1975, it is doubtful that any significant amount of up-stalk leaf to-
bacco will go under loan to Stabilization.
The keynote for the 1976 marketing season will be quality. Qual-
ity to most buying companies is ripe tobacco of most any stan-
dard grade, free of sand and other foreign matter, with the very
best care possible given to uniformly sheeting it for market.
Growers who concentrate on marketing tobacco with these ele-
ments of quality can be assured of receiving the top market price.
With a little luck from the weather during the growing season,
and with the $1.06 average price support, the 1976 marketing sea-
son should average at least $1.10 per pound. Thus, North Caro-
lina with an effective quota of 942 million pounds, has the poten-
tial of selling its first billion dollar crop.
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12
state Market Summary 1975-76
The tobacco industry appealed to North Carolina growers to
significantly step up production in 1975 in order to protect our ex-
port markets, increase domestic stocks, slow down importation
of foreign flue-cured and burley tobacco and preserve the tobacco
quota program. Growers responded to the pleas for more to-
bacco by producing the largest crop since 1964 and the 5th largest
crop produced in this state. However, unseasonable weather
ranging from a very dry June to an extremely wet July, to a
severely dry and hot August caused much of the 1975 crop to
come up short of the desirable quality characteristics that were in
strong demand. Lower stalk tobacco contained unusually large
amounts of sand and foreign matter and displayed a washed out
appearance, while upper stalk tobacco in the Piedmont area ex-
hibited sun-baked and immature characteristics. None of these to-
baccos were attractive enough to stimulate continuous keen com-
petition among the buying interest for the entire season. So, with
the larger, lower quality crop in 1975, growers did not achieve
the record high average established in 1974.
Flue-cured average price of $99.77 per hundred pounds for
North Carolina markets was disappointing to growers because of
a $5.77 per hundred pounds decline from the previous year's
record high average of $105.54. Although the average price de-
clined, a substantial volume increase pushed the crop value to a
record level. North Carolina flue-cured markets sold 924,574,261
pounds of tobacco for a sum of $922,467,722 in 1975. In compari-
son, the 1974 sales were 756,758,214 pounds which sold for
$798,702,014.
Burley farmers were not able to maintain the record breaking
trend that had existed for the previous year. North Carolina Bur-
ley markets averaged $102.10 per hundred pounds for the season,
down $4.55 per hundred pounds from the previous years average.
Type 13 Markets opened July 9, the earliest opening date in the
history of the flue-cured markets. The season stretched over 66
sales days, eight more sales days than the previous season, with
final sales occurring on November 5. Farmers halted several sales
during the early part of the season in protest of low prices being
paid for offerings.
Quality was down in comparison to the previous year due to
fewer good leaf grades and more low quality lugs, primings, non-
descript and damaged tobacco being sold.
Grade price averages were off $1.00 — $18.00 per hundred
pounds on most grades with the heavy losses occurring on low
leaf grades. A few priming and lug grade averages were up $1.00
per hundred pounds. Type 13 season market average was $100.00
13
per hundred pounds, down $3.83 per hundred pounds from the
1974 record average.
Producer sales for 1975 totaled 144,895,965 and sold for
$144,902,327 which is a sizeable increase from the 1974 sales of
113,433,437 pounds which brought $117,778,281.
Stabilization received 24,856,203 pounds 17.15 percent of pro-
ducer sales. In 1974, receipts were 2,835,136 or 2.5 percent of
producer sales.
Type 12 markets open on July 15, the earliest opening in the
history for these markets, and operated through November 26,
for a total of 75 sales days, 14 more sales days than the previous
year.
Quality of offerings was noticably lower with a significant de-
crease in good lemon and orange grades and corresponding in-
crease in varigated and green grades.
Grade price averages were generally unchanged to $5.00 per
hundred pounds lower. A few top quality grades showed slight in-
crease. N 2 tobacco was off $37.00 per hundred pounds. Type 12
markets averaged $101.16 per hundred in 1975, down $4.82 per
hundred pounds from the 1974 record average.
Producer sales for 1975 increased to 506,560,874 pounds and
returned $512,413,354 to growers which is a record value for
type 12 markets. In 1974, producers sold, 407,007,009 pounds for
$431,331,721.
Stabilization receipts totaled 90,283,862 pounds or 17.82 per-
cent of producer sales. In 1974, Stabilization received 8,032,463
pounds or 1.97 percent of producer sales.
Type 11 markets began operating the earliest in history with
five of the sandhill markets opening on July 15, seven additional
markets opened July 29, and the remaining markets opened
August 5. The season lasted 74 sales days, five more than the
previous year, with final sales occurring on November 25.
Quality declined substantially with less good leaf, smoking
leaf and cutter grades being sold, while a relative increase oc-
curred in poor offerings. A larger percentage of the crop was com-
posed of lugs and nondescript grades. The color factor also de-
teriorated with more of the tobacco being varigated instead of
orange.
Grade price averages were predominately lower from $3.00 —
$7.00 per hundred pounds but a few choice grades showed slight
gains. The season average for type 11 markets was $97.08 per
hundred pounds for producer sales, a loss of $8.54 per hundred
pounds from the 1974 record average.
Producer sales totaled 273,117,422 pounds and sold for
$265,152,050. In comparison, the 1974 producer sales were
236,317,768 pounds which brought growers $249,592,012.
Stabilization receipts were 61,082,075 pounds and amounted to
22.36 percent of producer sales. In 1974, Stabilization received
3,138,620 pounds or 1.3 percent of producer sales.
14
Type 31 Burley markets opened on November 24, and oper-
ated 20 sales days with final sales occurring on January 8.
Quality was similiar to the previous year. The percentage of
mixed grades decreased slightly with more of the crop going into
straight grades.
Grade price averages were down generally $3.00 — $9.00 per
hundred pounds while some tip and nondescript grades were off
$29.00 per hundred pounds. North Carolina markets averaged
$102.10 per hundred pounds for the season, a decline of $4.55 per
hundred pounds from the 1974-75 record average.
Producer sales on the three North Carolina Markets for 1975-76
increased to 20,357,407 pounds and returned growers $20,785,618.
During the 1974-75 season producers sold 17,401,664 pounds for
$18,558,653.
Burley Stabilization receipts were 2,316,730 pounds or $10.56
percent of producer sales; up sharply from the 1974-75 season
when only 308,993 pounds of 1.78 percent of producer sales
went to the Burley pool.
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17
SUMMARY OF N. C. DEALERS AND
WAREHOUSE RESALES — 1975
Percentage
Type Pounds Dollars Resale
TYPE 13
Dealer
Warehouse
TYPE 12
Dealer
Warehouse
TYPE 11
Dealer
Warehouse
Total Flue-Cured Resales
TYPE 31
Dealer
Warehouse
Total Burley Resales
385,380
6,779,764
341,485
7,102,680
0.27
4.68
2,108,067
14,625,514
2,028,332
14,802,330
0.42
2.89
1,015,303
11,323,546
898,832
11,345,550
0.37
4.15
36,237,574
36,519,209
3.92
200,586
1,395,347
205,464
1,431,021
0.99
6.85
1,595,933
1,636,485
7.84
PRODUCERS AND GROSS SALES OF FLUE-CURED
TOBACCO BY STATE — 1975
Producer
Pounds
Sales
Average/cwt
Gross Sales
Pounds Average/cwt
North Carolina
924,574,261
99.77
960,811,835
99.81
Virginia
South Carolina
127,714,836
176,474,352
101.15
99.54
132,079,536
185,234,040
101.14
99.61
Georgia
154,711,126
100.41
162,286,703
100.49
Florida
27,133,679
97.85
28,293,240
98.02
Total
1,410,608,254
99.90
1,468,705,354
99.95
18
FLUE-CURED MOVEMENT IN AND OUT
OF NORTH CAROLINA
N. C. Tobacco Sold Out of State Out of State Tobacco Sold in N. C.
(Pounds) (Pounds)
1975 1974 1975 1974
Virginia 21,814,000 23,302,000
South Carolina 6,933,000 7,297,000
Georgia — 165,000
Florida — 91,000
Total 28,747,000 30,855,000
5,988,000
16,661,000
22,649,000
5,263,000
11,699,000
16,962,000
BURLEY TOBACCO MOVEMENT IN AND OUT
OF NORTH CAROLINA
N. C. Tobacco Sold Out of State Out of State Tobacco Sold in N. C.
(Pounds) (Pounds)
1975 1974 1975 1974
Tennessee
4,461,719
3,047,628
620,707
515,421
Virginia
48,202
10,066
1,066,552
1,066,461
W. Virginia
—
—
33,070
38,962
Georgia
—
—
28,503
23,844
South Carolina
1,176
1,750,008
2,162
Total
4,509,921
3,057,694
1,646,850
19
FLUE-CURED STABILIZATION RECEIPTS
BY TYPES AND STATES— 1975
Producer
Stabilization
Percentage
State
Type
Sales (lbs.)
Receipts (lbs.)
Stab. Received
Va. Total
11
127,714.836
22,160.005
17.35
N. C.
11
273.117.422
61.082,075
2236
N. C.
12
506,560,874
90,283,862
17.82
N. C.
13
144,895,965
24,856,203
17.15
N C. Total
11-13
924,574,261
176,222,140
19.06
S C Total
13
176.474,352
31.724.349
17.98
Ga^ Total
14
154,711,126
23.730.972
1534
Fla^ Total
14
27,133,679
5,191,159
19.13
Total All Types
1.410,608,254
259,028.625
1836
BURLEY STABILIZATION RECEIPTS
FOR N.C, AND TOTAL U.S. — 1975-76
State
Type
Producer
Sales (lbs.)
Stabilization
Receipts (lbs.)
Percentage
Stab, Received
N. C.
U. S, Total
31
31
21.949.517
639.900.000
2,316.730
51.194.487
10.56
8.00
20
N. C^ BURLEY TOBACCO ALLOTMENTS-1976'
Number Base Effective
County Farms Poundage Poundage Rank
Allegfiany
Asfie
Avery
Buncombe
Burke
Caldwell
Cfierokee
Clay
Cleveland
Davidson
Graham
Granville
Haywood
Henderson
Iredell
Jackson
fVlcDowell
Macon
Madison
Mitchell
Polk
Rutherford
Stokes
Surry
Swam
Transylvania
Watauga
Wilkes -- •
Yancey
Total
"Source: USDA Agricultural Stabilization and Conservation Service
587
685,729
871,598
9
2,639
2,780,070
3,763,360
4
249
306,439
414,454
10
2,893
3,419,749
4,407,937
2
7
5,476
10,272
22
13
8,373
16,953
20
183
150,917
268,096
13
232
185,051
288,732
12
8
5,517
9,542
21
2
1,636
2,545
26
710
712,329
982,473
8
1
299
240
29
1,940
2,181,381
2.675.251
5
113
87,579
165,306
16
1
1.373
2,818
27
249
224.233
413,262
11
58
49,094
89.694
18
200
144.503
251.126
14
3,000
5,299,802
5.799.375
1
982
1.322,873
1.810,926
7
5
2,354
6.856
25
55
32,030
62,291
19
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827
28
7
2,910
3,265
24
155
122,515
224,847
15
72
52,562
91.802
17
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1,968,921
2,543,896
6
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3,906
6,412
23
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2,805,590
3,412,799
3
17,961
22,563,890
28,596,955
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23
North Carolina Flue-Cured Crops
1920-1975*
Yield Per
Year
No. Acres
Acre
Production
Value
Average
(Pounds)
(1,000 lbs.)
(1,000 Dollars)-
Price
1920
621,900
681
423,703
88,271
20.80
1921
414
900
594
246,540
60,402
24.50
1922
444
000
611
271,170
74,572
27.50
1923
544
300
728
396.354
81,998
20.70
1924
473
500
585
276,819
62,597
22.60
1925
536
200
696
373,352
83,756
2240
1926
546
700
692
378,274
96,762
2560
1927
639
600
755
482,982
100,414
20.80
1928
712
400
692
493,132
93.450
19.00
1929
729
300
665
484,630
89,470
18.50
1930
768
000
757
581,200
74,733
12.90
1931
688
500
692
476,382
42,024
8.80
1932
462
500
624
288,750
34.949
12.10
1933
667
800
794
530,133
85,530
16 10
1934
486
500
847
412.055
177,999
28.60
1935
612
500
635
572.625
116,418
20 30
1936
591
000
765
451.975
101,856
22.50
1937
675
000
883
595.815
143,058
24.00
1938
603
500
844
509,470
115,428
22.70
1939
843
000
964
812.540
123,893
15.20
1940
498
000
1,038
516.835
85,792
16.60
1941
488
000
928
452.825
132,291
29 20
1942
539
000
1,052
566.810
221,538
39.10
1943
580
000
935
542.200
219,074
40.40
1944
684
000
1,077
736.990
317,628
43.10
1945
722
000
1,100
794.310
349,148
44.00
1946
802
000
1,138
912.970
451,639
49.50
1947
783
000
1,139
892.205
374,513
42.00
1948
594
000
1,239
739.380
368,040
49.80
1949
621
000
1,178
731.530
352,508
48.20
1950
640
000
1,441
858.140
477,508
55.60
1951
735
000
1,331
978.375
523,358
53.50
1952
735
000
1,222
898.090
448,582
49.90
1953
674
000
1,235
832.305
447.076
53.70
1954
686
000
1,204
889.490
483,003
54.30
1955
653
000
1,499
978.775
520,845
53.20
1956
579
000
1,661
961.495
496,324
51.60
1957
443
000
1,469
50.780
358,442
55.10
1958
429
000
1,718
736.855
427,307
58.00
1959
458
500
1,533
702.942
407,055
57.90
1960
457
500
1,836
839.870
512,731
61.10
1961
463
000
1,797
832.215
541,468
65.10
1962
483
000
1,890
912.810
549,594
60.20
1963
460
500
1,999
920.660
535,622
58.18
1964
416
000
2,282
949.450
549,875
57.90
1965
375
000
1,840
690,050
442,796
64.20
1966
409
500
1,859
761.360
506,605
66.50
1967
395
400
2,071
818,997
523,809
64.00
1968
350
500
1,850
648,533
430,613
66.45
1969
378
500
1,838
695,665
502,305
72.20
1970
383
800
2,076
796,941
571,211
71.70
1971
339
000
2,102
712,960
552,544
77.50
1972
332
000
1,993
661,520
566,267
85.60
1973
376
000
2,111
793,615
700,410
88.30
1974
390
000
1,975
770,160
813,427
105.60
1975"
470
000
1.982
932,000
930,000
99.70
24
"Source: N, C. and USDA Crop Reporting Service
■■Preliminary for 1975
Note: Since 1965. production is pounds produced and does not reflect pounds
not sold or pounds carried forward to the next season.
North Carolina Burley Crops
1928-1975'
Yield Per
Year
No Acres
Acre
Production
Value
Average
(Pounds)
(1,000 lbs )
(1,000 Dollars)
Price
1928
3,600
650
2,340
$ 690
S 29.50
1929
5,500
730
4,015
863
21.50
1930
7,200
750
5,400
853
15-80
1931
7,100
710
5,041
464
9.20
1932
6,500
735
4,778
726
15,20
1933
9,200
785
7,222
715
9.90
1934
5,500
870
4,785
809
17.50
1935
5,200
925
4,810
1,025
21.30
1936
6,000
900
5,400
2,095
38.80
1937
9,000
975
8,775
1,787
21.40
1938
8,600
900
7,740
1,308
16.90
1939
8,100
1,070
8,667
1,447
16.70
1940
6,500
1,050
6,825
1,242
18.20
1941
6,200
1,075
6,665
2,093
31,40
1942
6,600
1,150
7,590
3,211
42,30
1943
8,500
1,225
10,412
5.102
49.00
1944
12,000
1,390
16,680
8.157
48,90
1945
13.000
1,500
19,500
7.568
38,30
1946
9,800
1,475
14,455
5,999
41,50
1947
9,600
1,560
14,976
6,335
42,30 ,
1948
10,300
1,680
17,304
8.012
46,30
1949
10,800
1,440
15,552
6.750
43.40
1950
10,500
1,700
17,850
9,175
51,40
1951
12,200
1,750
21,350
11,572
54.20
1952
12,000
1,680
20,160
9,818
48.70
1953
11,400
1,800
20,520
11,019
53,70
1954
12,700
1,920
24,384
12,680
52,00
1955
9,800
1,900
18.620
10,651
57,20
1956
9,400
1,850
17.390
10,747
61,80
1957
9,600
1,975
18,960
11,073
58.40
1958
9,300
2,000
18,600
11,978
64,40
1959
9,800
2,060
20,188
11,426
56,60
1960
9,500
1,940
18,430
12,016
65,20
1961
10,400
2,090
21,736
14,346
66,00
1962
11,000
2,185
24,035
14,421
60,00
1963
11,000
2,285
25,135
13,573
54,00
1964
9,700
2,165
21,000
12,054
57,40
1965
8,900
2,030
18,067
12,159
67,30
1966
7,900
2,320
18,328
12,371
67,50
1967
7,800
2,010
15.678
11.037
70,40
1968
7,900
2,385
18,842
13.868
73,60
1969
7,900
2,570
20,303
13.928
6860
1970
7,300
2,545
18,579
13.544
7290
1971
7,000
2,065
14,455
11,535
79,80
1972
7,700
2,450
18,865
14,658
77,70
1973
7,500
2.440
18,300
16,781
91,70
1974
8,000
2,370
18,960
20,477
106,70
1975'*
9,000
2,400
21,600
22,037
102,10
'Source: N, C. and USDA Crop Reporting Service
'•Preliminary for 1975
Note: Since 1965 production is pounds produced and does not reflect pounds
not sold or pounds carried forward to the next season.
25
North Carolina Tobacco Warehouses and Operators
By Type and Markets — 1975
Type 13
Chadbourn
Jimmy Green — Jimmy Green
Producers — Kenneth Ray. Horace Cox, Jack Cox
Clarkton
New Clarkton — Maynard Talley, Cecil Hartley, J. R. Jessup
Bright Leaf — Jimmy Green
Clarkton Farmers Exchange — Edwin Ekins, Howard Watts
Fair Bluff
Powell's — B. A^ Powell, Albert H. Powell
Planters 1 & 2 — Randolph Currin, C. W. Shaw, S. Lawrence, H. E. Dunn,
H^ B, Dunn
Fair Bluff — J. G. McNeill, Mgr.
Fairmont
Planters-Mitchell — Harry Mitchell, Morris Daniel
Liberty & Twin State — Lynn Floyd, Hoke Smith, Jr., Landis Joyce
Big Brick — A. W. McDaniel
Holliday-Frye — E. H. Frye. J. W. Holliday, J. M. Holliday, Joe Frye
Square Deal — Mrs. W. G. Bassett, C. L. Smith
Tobacco Land — J. Q. Rogers, Ralph Britt
Big Five Warehouse Co. — Carl Britt, Dick Belts
Carolina — A. D. Lewis, Jr.
Fayetteville
Big Farmers — Clifton McNeill, P. L. Campbell
Planters — Billy Adams, Jimmy Adams, J. C. Adams
Lumberton
Carolina — J. L. Towsend, Sr. & Jr., J. E. Johnson, Jr., Sam Dunn
Liberty — H. D Goode, R. H. Livermore
Hedgepeth — E. H. Collins, Albert Thornton, Jr.
Cooperative — Mrs. V. H. McLaurin, L. D. West
Smith-Dixie — Jack Pait
Star — D. T. Stephenson, Hogan Teater, Russell Teater
Lumbee — Howard Oxendine, Ralph Hunt
Tabor City
R. C. Coleman — R. C Coleman, Sr., & Jr., Joe Coleman, Joey Coleman,
Ricky Coleman
Planters — Don Watson, Mgr.
New Tabor — Milton Clemmons, H. B. Buffkins, Earl McDaniels
26
WhJteville
Crutchfield's — G. E. Grutchfield, Jimmy Dale Smith
Columbus County — A. Dial Gray, A. Dial Gray, III
Lea's Big Dixie — William Townes Lea, Louis Love
Nelson's — Jimmy Smith, Lennox Long, Milton Gore
Moore's — C. C. Mason, C. E. Jeffcoat
Planters — A. O. King, Jr., Cliff Stephens
Smith's — Ernest Smith, Joe T. Smith, J. D. Smith
Liberty — J. W. Hooks, C. B. Barefoot
Golden Leaf — Jimmy Dale Smith, E. H. Smith
TYPE 12
Ahoskie
Basnight's — L. L. Wilkins, Jr., H. G. Veasey, H. Jenkins, Jr.
Farmers — W. M. Odom, S. S. Pierce, J. L. Morris
Clinton
Carolina — Mrs. L. D. Herring, C. J. Strickland, N. L. Daughtry, L. D. Starling,
J. P. Gore, Mrs. M. L. Peak
Ross — Clarence Kirven, Jr.
Farmers — L. D. Starling, Mrs. N. L. Daughtry, Mrs. N. L. Peak, Mrs. J. P. Gore
Bright Leaf — Hugh Barwick, Albert Thornton
Dunn
Big Four — Jack Calhoun, John Calhoun, Cleo Jones
Lee's Planters — Leiand Lee
Farmville
Bell's — R. A. Bell & Bros.
Fountain-Moye — James B. Fountain, Howard D. Moye
Planters — Chester Worthington, W. O. Newell, B. S. Correll, David Jones,
Mark Mozingo
New Blue — W. A. Allen
Pierce — Robert Pierce
Lee — Gordon Lee
Farmers Tobacco — Charles Sutton, W. A. "Red" Forbes
Goldsboro
Farmers — Rudy Hill
Victory — Richard Gray
Carolina — Guy Best, D. M. Price
Gold Leaf — Willie Strickland, W. W. Barnes
Big Brick — J. R. Musgrave, Sr. & Jr., Helen Musgrave
Big Three — N C. Newman, Max Parrish, Max Futrell
Greenville
Cannon's — W. T. Cannon, Carlton Dail
Keel's — J. A. Worthington, J. B. Worthington, Fenner Allen, A. T. Venters
27
New Carolina — Laddie Avery, Larry Hudson
Star Planters — Harding Sugg
Farmers — Harold Watson, Jack Warren
New Independent — T. W. Pruitt, W. A, Pruitt, James Belcher, W. E. Pruitt,
Jack Warren
Growers — J. L. Tripp
Raynor, Forbes, Clark — N. S. Porter, H. L. Fornes, W. C. Clark, R. P.
Harrington
Kinston
Farmers-New Dixie — John Jenkins, Sr. & Jr., Lee Jenkins
H & H — Dempsey Hodges, Jr., Virgil Harper
Knott's 1 & 2 — Graham Knott, Billy Brewer
Growers — Robert T. Gray, P. G. Sutton, Jr.
Central — W. I. Herring, Sr., & Jr., Dennis Bailey
New Central — W. I. Herring, Sr. & Jr., Dennis Bailey
Robersonville
Gray-Red Front-Central — Jack Sharp. Vernon Hardee, Harry T. Gray
Hardees — Edwin Lee
Big Gem 1 & 2 — J. H. Gray, Sr., H. H. Pope, Jr.
Rocky Mount
Cobb & Carlton Warehouse — W. E. Cobb, Jr., J. C. Carlton
Farmers 1 & 2 — Joe W. Coleman, Allen C. Cooper
Fenner's — Julian B. Fenner, Jr.
Tobacco Planters — S. S. Edmondson, Sr., & Jr.
Works — R. J. Works, Jr., A. B. Raynor
Peoples — Guy Barnes, Gene Simmons, James Walker
Smith's — Jimmie D. Smith, Sr. & Jr.
Smithfield
Big Planters — Joe Stephenson, Jerry Stephenson
Gold Leaf — R A. Pearce, Sr., & Jr.
Wallace ~ Bobby Wallace, Larry Wallace
Riverside — Gilbert Stephenson
Farmers — N. Leo Daughtry, Bill Kennedy
Tarboro
Clark's 1 & 2 — J. F. Wilson, Jr., George L. Proctor
Victory — W. V Leggett, C. H. Leggett
Farmers — Walter Walker, W. G. Maples, Fred Walston
Wallace
Farmers — H. G. Perry
Sheffield's — Homer M. Boney, Jr.
Blanchard & Farrior — Jean Blanchard, R. H. Lanier
Hussey's — Joe Bryant
28
Washington
Bright Leaf — N. T Cox, Harry L, Roberts
Gravely's — W, A^ Gravely, Sr. & Jr,
Talley Bros. — W. G. Talley
Hassell — Malcolm P. Hassell
Wendell
Farmers — Carson Jones, Mgr
Northside — Graham Dean, Bill Sanders
Liberty — H, H. Eddins, Berdon Eddins
Banner — C. P. "Pete" Southerland, E, C Rogers
Growers — Clyde Holmes, C. M. Pate, Charles Congleton
Planters — Bob Doyle, Bill Raybon
Williamston
Rogers — Urbm Rogers, H. L. Barnhill, Rossell Roger
New Dixie — J. Elmo Lilley, Sr. & Jr., Stephen Lilley, William Lilley
Wilson
Big Star— Thurman B. Pate
Big Dixie — W. Cecil Thompson, W. C. Edmondson
Liberty — J. T. Worthington, W. Cecil Moore, Robert D. Oldham
Nichols & Scott — A. B. Nichols, Clay Scott
Centre Brick — S. M. Cozart, U. H. Cozart, III, Fred Eagles
Bob & Clark — C. R. Clark
Wainwright's — George L. Wainwright, Sr. & Jr.
Smith's-Planters — S. Grady Deans, John F. Deans
Growers Cooperative — Clifford Aycock, Mgr.
Windsor
Planters — C. B. Griffin, B. U. Griffin. Dave Newson
Farmers — Bill David, Norman Swain
Center — Jerry Shakleford, J. R. Freshwater
TYPE 11
Aberdeen
Planters — W. Fentress Phillips
Hardee's — Hugh T. Hardee, Jr.
Carthage
McConnell's — E. C. Layton, Earl J. Ennis, George W. Mabe
Farmers — Bill Carter, Sr. & Jr.
Victory — E. C. Layton, Earl J. Ennis
Carthage Coop. — Joe F. Cook, Mgr.
29
Durham
Liberty — Walker S, Stone
Farmers-Planters — J. M. Talley, Bob Dale, Bobby Thomas, Sam Mangum
Estate
Star 1 & 2 — W. W Cozart, W. L. Currm, A. L. Carver, Estate
Roycroft's Currin — Randolph Currin
CCF #1 Tobacco Coop. — James Spell, Mgr.
Ellerbe
Richmond County ~ Ashton Richardson, R. P. Brim, Jr., Ransom Raines
Farmers — Cecil Moore, Bobby Oldham
Fuquay-Varina
Carolina — Douglas E. Knott, Larry C. Knott
Roberts — Joe Roberts
Fuquay Cooperative — Leo Matthews, Mgr.
Planters — Billy Adams, Jimmy Adams, W. C. Lipscomb, Ray Owen
New Deal — Dan Talley, Dan Brisson
Gold Leaf — J. W. Dale
Henderson
Jeff's Big Banner — C. E. Jeffcoat
Alston-Farmers — W. J. Alston, Jr.
High Price-Dixie — C B. Turner, R. E. Tanner, R. E. Fleming, J. K. Parks,
M, D. Abbott
Liberty 1 & 2 — George T. Robertson, S. E. Southerland, John Wilson
Ellington — H. Ellington, John Ellington
Big Dollars — M. L. Hight, James H. O'Brien, Thomas Barham
Louisburg ^
Ford — Charlie Ford, Sr. & Jr.
Star — James Speed, Gus McGhee, Clemmons Pearce
Big Franklin — S. T. Cottrell, James B. Cottrell, L. D. Cottrell
Oxford
Yeargin — W. W. Yeargin
Banner Mitchell — David Mitchell
Johnson-High Price-Owen — John S. Watkins, Jr., C. R. Watkins, Jr.
Joe C. Hamme, T. J. Currin, C. B. Wilkins, M. A. Goode
Granville-Mangum — R. W. Crews, Bernard Jones, Allen Daniel, Guy
Whitehurst
Fleming — F, O. Finch, D. T. Currin, Jr.
Sanford
Castleberry — C. N. Castleberry, Jr., Mitchell Jackson
Farmers Cooperative — Gilbert Mathews, Mgr.
Morgan's — Jimmy Morgan
Twin City 1 & 2 — W. M. Carter, T. W. Mansfield
30
Warrenton
Farmers — H. J. Carter, G, H Limer
Centre 1 & 2 — Ed Moody, B. M. Griffin, W. E. Radford
Currin's — D. G. Currin, B. W. Currin, C. W. Currin, David Tillotson
High Dollar ~ M. P. Carroll, Charles Steinback
Thompson's — C. E Thompson, M. P. Edwards, Jr.
Burlington
Newman & Roberts — N. C. Newman, Joe Robertson
Farmers — Bill McCauley, Alpha McCray
Carolina — C. R. McCauley
Greensboro
Greensboro— R. C. Coleman, Jr.
Guilford — J. R. Pell, H. P. Smothers, W. B. Hull, J. E. Pell, Rachel
S. Hull
Madison
Carolina — Lee McCollum, Ray White, Mrs. Lloyd Webster
New Brick — Mrs. Lloyd Webster, Ray White
Sharpe-Smith-Farmers — W. S. Smith, George Denham, Jr., F. S. Williams,
D. H. Price, Jr.
Mebane
Piedmont — Billy Hopkins, Jimmy Hopkins
Farmers — Jule Allen, Bill Allen
Mt. Airy
Dixie — Tom Jones, Boyd Cam, F. V. Dearmin, Jr., H. Y. Hodges. Fred
Chilton
Hunter — Dean Hunter, Max Hunter
Gold Leaf — Paul Draughn, Roger L. Nichols
Reidsviile
New Farmers — C. E. Smith, Steve Smith. S. L. Fairchild, Phillip Carter
Smothers-Watts-Leaders — A. P. Sands, Larry Sands. Tom Kimbro. T Garland
Smothers
North State Farmers Coop. — Pete Gunn, Mgr
Roxboro
Hyco — F. J Hester, F. J. Hester, III
Growers 1 & 2 — Elmo Mitchell, F^oy Carver
Planters — T. O. Pass, Sr., & Jr.
Farmers — Lindsay Wagstaff. Kenneth Wagstaff. R. A Hester. Larry C. Hester
Four Acres — H. W. Winstead. Jr. & Pres.
31
Stoneville
Joyce's — O. P. Joyce, Sr. & Jr., W. R. Joyce
Piedmont — R. N. Linville, Clarence Peeples, W, Q.Chilton, Robert Rakestraw,
Garland Rakestraw
Winston-Salem
Carolina Star — Ken Chilton
Growers — R. J. Harris, J. T. Harris, Roger Harris
Pepper's — C. F. Hutchins, Dan Hutchins
Cook's — Claude Strickland, Jr., P. Thomas, Doug Cook
Taylor's — L. E. Pope
Big Winston — Taylor Carter, Jack Carter
Yadkinville
Northwest Farmers — R. A. Owen, Ken Gray
Miller Tobacco — J. A. Miller, Sr., & Jr.
Yadkin County Tobacco 1, 2 & 3 — J. W. Flinchum, Bill Wall, Howard Pegram
BURLEY BELT
Asheville
Day's — Charlie Day
Dixie Burley — R. A. Owens
Planters — J. W. Stewart
Boone
Mountain Burley — Joe Coleman, Joey Coleman, Ricky Coleman, Lavelle
Coleman
West Jefferson
Tri-State Burley — Rex Taylor
Farmers Burley — Mrs. Tom Faulkner
32
THE CIGARETTE TAX BURDEN
Hundreds of books, magazine articles and pamphlets have been
written telling the colorful story of tobacco from Colonial days
down to the present. These writings have made clear the im-
portance that tobacco has played in giving strength to the economy
of the early settlers as they labored in the birth of a nation.
However, the Tobacco Tax Council emphasizes that what has not
been fully told by early and present day writers is the history of
tobacco as a subject of taxation.
The early experiments in tobacco taxation in the United States
were intensified with the advent of the Civil War as the Federal
Government embarked upon an extensive program of excise taxes,
most of which were abandoned shortly after the close of the war.
However, taxes on tobacco products were retained and became
fixed as a permanent feature of the Internal Revenue System, con-
tinuing down to the present with a federal tax of 8 cents a pack.
In 1921, Iowa became the first state to impose taxes on cig-
arettes. Today all 50 states impose taxes on cigarettes ranging from
2 cents a pack in North Carolina to 21 cents a pack in Connecticut.
Eighteen years ago, the most prevalent state tax rate was 3 cents
a pack. Today, state taxes on cigarettes average about 12.5 cents a
pack.
During the decade of the 1930's municipal governments entered
the cigarette tax field in substantial numbers. In the fiscal year
ending June 30, 1975, 365 local governments imposed cigarette
taxes.
In 1975, with three levels of government exacting revenues from
cigarettes, the total tax from all three levels amounted to $5.7
billion. These taxes represent more than five times the gross
receipts of the farmer for the tobacco leaf used in the manufacture
of domestically consumed cigarettes. (See accompaning chart). It
should be pointed out that the overall taxes imposed at the three
levels of government operate to double the price of cigarettes.
Contrary to the thinking of economists of the past, the demand
for cigarettes in many states is quite elastic. Simply stated the
demand for cigarettes in a given community is directly influenced
by the market price of cigarettes. According to statistics compiled
by the Tobacco Tax Council, consumers have already demonstrated
their unwillingness to buy cigarettes in a community in which tax
rates on cigarettes are high. They have several alternative choices.
They can cut down or abandon their use of cigarettes. They can
33
cross political boundaries where cigarette taxes are lower; or they
can acquire their cigarettes from sources which by one means or
another avoids the heavy burden of the tax in their own com-
munities.
Such is the magnitude of the burden of cigarette taxes as to cause
grave concern regarding their effect upon the leaf grower, the
manufacturer and allied industries. While it is true that these ex-
cise taxes are passed on to the consumer, it follows that the mar-
ket for cigarettes depends upon the price the consumer is willing to
pay for his smoking pleasure.
J. H. Cyrus, Treasurer
Tobacco Tax Council
THE GROWTH OF CIGARET EXCISE TAXES COMPARED TO GROWERS' GROSS RKEIPTS
6000
M
LLIONS C
F DOLLARS
MILLIONS OF
DOLLARS
5500
-
"^^ -
5000
-
E«c.>e
laxei on cigarett compsfad with
\ Bfon receipt* for lea' lobacco
-
4500
-
-
-
4000
-
-
3500
-
-
3000
-
-
2S00
-
FEDERAL, STATE AND LOCAL TAXES
-
2000
^
y^
-
1500
-
-
1000
-
GROWERS GROSS RECEIPTS
^-
BOO
Kt-
t \ — \'^ T 1 1 1 1 1 1 1 1 1 1
Mill
1 1
l«SO If SI I«S1 l«S] mt l*5S l«S« Itjr l«Jt I9S9 l*U l**l l**l l*»3 1**4 1«*> 1*4* l*»7 ■«»• l»* 1*70 1*7 1 1*71
Source: Tobacco Tax Council
34
STATE BOARD OF AGRICULTURE
James A. Graham; Commissioner
Ex-Officio Chairman
Dr. Ben Harrington Raleigh
Evelyn M. Hill Edneyville
Donald R. Kincaid Lenoir
George P. Kittrell Corapeake
Henry Gray Shelton Speed
Henry Smith Farmville
Fred Snow Dobson
James L. Sutherland Laurinburg
Windell L. Talley Stanfield
Sherrill Williams Newton Grove
35
DOMESTIC TAX PAID CIGARETTE CONSUMPTION
BY KINDS 1975
Total Domestic Consumption
598 Billion Cigarettes
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